Which of the following statements about a vertical marketing system (VMS) is true?
A) A VMS is a channel in which there is cooperation among channel members at two or more different levels of the channel.
B) Members of a VMS operate totally independently of one another outside of buying and selling one another's products.
C) The three types of vertical marketing systems are independent, conventional, and customized.
D) Channel conflict is a more serious problem in a vertical marketing system than in a conventional marketing system.
E) Conventional marketing systems are more efficient than vertical marketing systems.

Question

Quizplus · Accepted Answer

A VMS involves cooperation among channel members at different levels of the channel, which can lead to increased efficiency and effectiveness in distribution. The three types of VMS are corporate, administered, and contractual. Channel conflict can still occur in a VMS, but it is often easier to resolve due to the closer relationships between channel members. Conventional marketing systems are not necessarily more efficient than VMS, as it depends on the specific circumstances of the market and products being sold.

Which of the Following Statements About a Vertical Marketing System